Currency: Rupee flat, overnight rates lower

Dealers say the rupee may ease next week when higher import payments are due.


Reuters April 09, 2011

KARACHI: The rupee ended flat despite rising international oil prices amid continuous healthy dollar inflows, but dealers said the rupee may ease next week when higher import payments are due.

The rupee closed at 84.85/90 to the dollar, unchanged from Thursday’s close. In recent months, rising dollar inflows due to higher export proceeds, as well as a record inflow of remittances have supported the rupee. These inflows have pushed the country’s foreign exchange reserves to $17.64 billion in the week ended April 2.

In the money market, overnight rates fell to between 13.50 per cent and 13.75 per cent, compared with Thursday’s close of 13.90 per cent after the State Bank of Pakistan bought back government paper worth Rs32.50 billion.

Published in The Express Tribune, April 9th,  2011.

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